§ 131 — Limitations on assessment

§ 131. Limitations on assessment. (a) General.--Except as otherwise\nprovided in this section, any tax under this title shall be assessed\nwithin three years after the return was filed (whether or not such\nreturn was filed on or after the date prescribed).\n (b) Time return deemed filed.--For purposes of this section a return\nof income tax filed before the last day prescribed by law or by\nregulations promulgated pursuant to law for the filing thereof, shall be\ndeemed to be filed on such last day.\n (c) Exceptions.--(1) Assessment at any time.--The tax may be assessed\nat any time if--\n (A) no return is filed,\n (B) a false or fraudulent return is filed with intent to evade tax,\n (C) the taxpayer fails to comply with section one hundred twenty-seven\nin not reporting a change or correction increasing or decreasing his\nfederal taxable income as reported on his federal income tax return, or\nthe execution of a notice of waiver and the changes or corrections on\nwhich it is based or in not reporting a change or correction which is\ntreated in the same manner as if it were a deficiency for federal income\ntax purposes, or in not filing an amended return, or\n (D) the taxpayer fails to file a report or amended return or report\nrequired under section one hundred twenty-seven-A, in respect of a\nchange or correction of sales and compensating use tax liability,\nrelating to the purchase or use of items for which a sales or\ncompensating use tax credit against the tax imposed by this title was\nclaimed.\n (2) Extension by agreement.--Where, before the expiration of the time\nprescribed in this section for the assessment of tax, both the director\nof finance and the taxpayer have consented in writing to its assessment\nafter such time, the tax may be assessed at any time prior to the\nexpiration of the period agreed upon. The period so agreed upon may be\nextended by subsequent agreements in writing made before the expiration\nof the period previously agreed upon.\n (3) Report of changed or corrected federal income. If the taxpayer\nshall, pursuant to section one hundred twenty-seven, report a change or\ncorrection or file an amended return increasing or decreasing his\nfederal taxable income or report the execution of a notice of waiver and\nthe changes and corrections on which it is based, or a change or\ncorrection which is treated in the same manner as if it were a\ndeficiency for federal income tax purposes, the assessment (if not\ndeemed to have been made upon the filing of the report or amended\nreturn) may be made at any time within two years after such report or\namended return was filed. The amount of such assessment of tax shall not\nexceed the amount of the increase in city tax attributable to such\nfederal change or correction. The provisions of this paragraph shall not\naffect the time within which or the amount for which an assessment may\notherwise be made.\n (4) Deficiency attributable to net operating loss carryback.--If a\ndeficiency is attributable to the application to the taxpayer of a net\noperating loss carryback, it may be assessed at any time that a\ndeficiency for the taxable year of the loss may be assessed.\n (5) Recovery of erroneous refund.--An erroneous refund shall be\nconsidered an underpayment of tax on the date made, and an assessment of\na deficiency arising out of an erroneous refund may be made at any time\nwithin two years from the making of the refund, except that the\nassessment may be made within five years from the making of the refund\nif it appears that any part of the refund was induced by fraud or\nmisrepresentation of a material fact.\n (6) Request for prompt assessment.--If a return is required for a\ndecedent or for his estate during the period of administration, the tax\nshall be assessed within eighteen months after written request therefor\n(made after the return is filed) by the executor, administrator or other\nperson representing the estate of such decedent, but not more than three\nyears after the return was filed, except as otherwise provided in this\nsubdivision and subdivision (d).\n (7) Report on use of certain property.--Under the circumstances\ndescribed in paragraph two of subdivision (b) of section one hundred\neight, the tax may be assessed within three years after the filing of a\nreturn reporting that property has been used for purposes other than\nresearch and development to a greater extent than originally reported.\n (8) Report concerning waste treatment facility.--Under the\ncircumstances described in paragraph (9) of section one hundred six, the\ntax may be assessed within three years after the filing of the return\ncontaining the information required by such paragraph.\n (9) Report of change or corrected sales and compensating use tax\nliability.--If the taxpayer files a report or amended return or report\nrequired under section one hundred twenty-seven-A, in respect of a\nchange or correction of sales and compensating use tax liability, the\nassessment (if not deemed to have been made upon the filing of the\nreport) may be made at any time within two years after such report or\namended return or report was filed. The amount of such assessment of tax\nshall not exceed the amount of the increase in city tax attributable to\nsuch state change or correction. The provisions of this paragraph shall\nnot affect the time within which or the amount for which an assessment\nmay otherwise be made.\n (d) Omission of income on return.--The tax may be assessed at any time\nwithin six years after the return was filed if (1) a taxpayer omits from\nhis city unincorporated business gross income an amount properly\nincludible therein which is in excess of twenty-five per centum of the\namount of city unincorporated business gross income stated in the\nreturn, or (2) an estate or trust omits income from its return in an\namount in excess of twenty-five per cent of its income determined as if\nit were an individual.\n For purposes of this subdivision there shall not be taken into account\nany amount which is omitted in the return if such amount is disclosed in\nthe return, or in a statement attached to the return, in a manner\nadequate to apprise the director of finance of the nature and amount of\nsuch item.\n (e) Suspension of running of period of limitation.--The running of the\nperiod of limitations on assessment or collection of tax or other amount\n(or of a transferee's liability) shall, after the mailing of a notice of\ndeficiency, be suspended for the period during which the director of\nfinance is prohibited under subdivision (c) of section one hundred\ntwenty-nine from making the assessment or from collecting by levy.\n